Questions and Answers

Your Questions About House Rent To Own

August 27, 2013

Betty asks…

Two siblings co-own house…Rent?

If two siblings co-own a house inherited from a parent, should the sibling NOT living in the house receive rent from the sibling living in the house. If so, should the money just go to the sibling not living in the house, or should that sibling put it into a house improvement/renovation fund. Should the sibling living in the house be paid for any work done in the house?

Thanks for the input!

Administrator answers:

Yes, the sibling who doesn’t live there should receive rent (one half of whatever the rental value is), because if the other sibling wasn’t living there, the house would be rented and that rental income would be divided between the siblings. The rent money should just go to the sibling, then if *necessary* repairs (and that’s different than just *wanted upgrades*) are needed on the home, the cost of those need to be split 50/50 by the two siblings.

John asks…

how do you buy a house with little or no money down. should you hava at least 5,000? rent or own house today?

is it better torent or own in todays job market and ecomomy?

Administrator answers:

Use a first time home buyer program such as Fannie May

Linda asks…

how can i find a rent to own house in my town with bad credit?

i have bad credit, am working on it but need to get a place to live right now….how can i find a place renttoown in my town with bad credit?

Administrator answers:

Talk to your Realtor about rent/lease to own properties

With homes NOT selling, many homeowners are left with a home they don’t want but can’t sell. Many are renting those homes to people at much less than what a mortgage would go for.

The rent covers their mortgage and the excess goes to an escrow account which builds over the contract term and becomes the down payment. While in a rent/lease to own contract…the home is essentially yours. If you decide not to purchase, I believe that you would lose a percentage if not forfeit the escrow which could be 10% or more.

Make sure your contract states an agreed upon purchase price or you may find that you still can’t afford the home.